Government commits to funding aged care industry wages increase except for retirement living

Australian Government has committed to financing the likely wages increases for workers employed by regulated aged care providers that could be recommended by the Fair Work Commission.

In its submission for the Work Value (Aged Care Industry) Case, the Government promised the Commission that it ” will provide funding to support any increases to award wages made by the Commission in this matter and that will help deliver a higher standard of care for older Australians”.

“We haven’t put a number to it because traditionally governments don’t that is for the commission to decide, exactly what percentage the work value cases is worth, but we have agreed that we will fund it no matter what the decision,” Aged Care Minister Anika Wells told The Guardian.

The Work Value Case (Aged Care Industry) before the FWC received applications to amend the Aged Care Award 2010,  the Nurses Award 2010 and the Social, Community, Home Care and Disability Services Industry Award 2010.

All applicants want an increase to wages of 25 per cent across all levels in all three Awards.

The Prime Minister said taxpayers would fund the increase to stop struggling private care providers from going bust due to increased wage bills.

Retirement Living Council Executive Director Ben Myers said that the government had advised it would not provide funding support to reduce the impact of these wage increases on retirement village residents.

“This means retirement village operators need to prepare residents for what the pending Fair Work Commission outcome will mean for general services charges and privately funded aged care and personal support services,” he said.